Formulation of Linear

Programming Models
Definition of Terms
Linear Programming (LP) is a
deterministic mathematical
technique designed to assist an
organization in allocating scarce
resources or in choosing from
among many alternatives.
Programming refers to planning or
selecting the best solution to a
problem using mathematical
techniques.
Formulation is the process of
developing the mathematical model
Requirements of an LP
Problem
1. There must be be process or decision
variables from which the decision
maker can operate at different levels
2. All problems seek to maximize or
minimize some quantity
3. LP problems have constraints, that
limit the degree to which an objective
can be pursued
4. The objectives and constraints must be
expressed in terms of linear equations
and inequalities
Basic Assumptions of LP
Proportionality exists in the
objective and constraints
Additivity dictates that the total of
all activities equals the sum of the
individual activities
Divisibility states that solutions
need not be whole numbers.
Certainty assumes all parameters
are known and certain.
Typical LP Models
Product Mix
Feed Mix
Production Scheduling
Investment Portfolio
Blending
Trim Loss
Others
The General LP Model
Max/Min Z = c
1
x
1
+ c
2
x
2
+ . . . + c
n
x
n

subject to:
A
11
x
1
+ A
12
x
2
+ . . . + A
1n
x
n
<= b
1


A
21
x
1
+ A
22
x
2
+ . . . + A
2n
x
n
<= b
2

.
.
A
m1
x
1
+ A
m2
x
2
+ . . . + A
mn
x
n
<= b
m


x
1
, x
2
, . . . x
n
>= 0
x
j
= decision variables or activity levels
c
j
= profit or cost coefficient
A
ij
= technology coefficient
b
i
= resource capacities (right hand side values)
[Objective
Function]
Constraints
A Product Mix Problem
The Opti Mize Company manufactures two
products that compete for the same (limited)
resources. Relevant information is:
Product A B Available resources

Labor-hrs/unit 1 2 20 hrs/day
Machine hrs/unit 2 2 30 hrs/day
Cost/unit $6 $20 $180/day

Profit/unit $5 $15
The Model
Let X
1
= number of units of product A to manufacture
X
2
= number of units of product B to manufacture

Max Profit = z = 5 X
1
+ 15 X
2


subject to:
X
1
+ 2 X
2
<= 20 (labor-hours)
2 X
1
+ 2 X
2
<= 30 (machine hours)
6 X
1
+ 20X
2
<= 180 ($ - budget)

X
1
>= 0, X
2
>= 0
ShirtStop makes logo tees and sells them in its
chain of retail stores. It contracts with two different
plantsone in Lyon and one in Rennes. The tees
from the Lyon plant cost 0.46 apiece, and 9% of
them are defective and cannot be sold. The tees
from the Rennes plant cost only 0.35 each, but
they have an 18% defective rate. ShirtStop needs
3,500 tees. To retain its relationship with the two
plants, it wants to order at least 1,000 shirts from
each. It would also like at least 88% of the shirts it
receives to be salable.

Suppose ShirtStop decides it wants to minimize the
defective tees while keeping costs below 2,000.
A canning company produces two sizes of cans
regular and large. The cans are produced in 10,000-
can lots. The cans are processed through a
stamping operation and a coating operation. The
company has 30 days available for each stamping
and coating. A lot of regular-size cans requires 2
days to stamp and 4 days to coat, whereas a lot of
large cans requires 4 days to stamp and 2 days to
coat. A lot of regular-size cans earns $800 profit,
and a lot of large-size cans earns $900 profit. In
order to fulfill its obligations under a shipping
contract, the company must produce at least nine
lots altogether. The company want to maximize
profit.
A Blending Problem
The B. A. Nutt Company sells mixed nuts of two
quality levels. The expensive mix should not
contain more than 25% peanuts nor less than 40%
cashews. The cheap mix should not have more
than 60% peanuts and no less than 20% cashews.
Cashews cost 50 cents a pound and peanuts cost 20
cents a pound. The expensive mix sells for 80 cents
a pound and the cheap mix for 40 cents a
pound. What should the blend of each mix be in
order to maximize profit. The company has $100 a
day with which to purchase nuts.
A Marketing Example
The I. B. Adman Advertising Company is planning a large media
blitz covering television, radio, and magazines to sell management
science to the public. The companys objective is to reach as many
people as possible. Results of a market survey show:
Television
Day time Prime Time Radio Magazines

cost per unit $40,000 $75,000 $30,000 $15,000
# people 400,000 900,000 500,000 200,000
# business 300,000 400,000 200,000 100,000

The company has a budget of $800,000 to spend on the campaign.
It requires at least two million exposures among the business
community. Television must be limited to $500,000, at 3 units of
day time and 2 units of prime time must be purchased. Advertising
units on both radio and magazines should be between 5 and 10.
Trim-Loss Problem
The I. M. Torn Paper Company produces rolls of paper
12 inches wide by 1000 feet in length. These standard
rolls are purchased by many of their customers.
However, some customers prefer to receive special sizes,
namely 2-inch, 3.5 inch, and 5-inch rolls, all 1000 feet
long. The special sized rolls are cut from the standard
12-inch roll.
Alternative cuts size of rolls
2-in 3.5-in 5-in waste
1 6 0 0 0
2 1 0 2 0
3 2 2 0 1
4 0 2 1 0
5 3 0 1 1
6 4 1 0 .5
required/mo 500 2000 1500
Job-Training
The Never-Say-Die Life Insurance Company hires and
trains a large number of salespersons each month to replace
those who have departed. Trained salespersons must be used
to train new salespersons. Training takes one month and there
is a 20 percent attrition rate by the end of the month. While a
salesperson is training a new employee, that person cannot be
used in the field selling insurance. The monthly demand for
experienced salespeople is:
Month Demand (in the field)
January 100
February 150
March 200
April 225
May 175

Trainees receive $400 per month while it costs the company $850 per
month for an experienced salesperson. Ten percent of all experienced
salespeople will leave the company by the end of each month.